Value of metro Birmingham's exports grows

The value of metro Birmingham exports grew 10 percent in 2010, slowing from the rate seen earlier in the decade as the local economy continued to regain its footing following the recession.

The data, issued today by the Brookings Institution Metropolitan Policy Program, shows Birmingham's growth rate for 2010 ranked No. 56 among the top 100 U.S. metros.

But from 2003 to 2008, the area's annualized export growth rate, by value, was 14.1 percent, a pace that ranked No. 9.

Ten percent is still quite a high growth rate, said Emilia Istrate, senior research analyst for Brookings.

"It's nothing negligible, but it is below what we have seen before the recession in Birmingham," she said. "That points to the fact that there is still a lot of export potential to be recovered in Birmingham."

Birmingham's top exports are primary metals, predominantly iron and steel shipped around the world by companies including U.S. Pipe, Nucor and others.

In 2010, the latest data available, primary metals accounted for $1.31 billion, or 31 percent, of Birmingham's $4.3 billion in total exports.

Following that is business services, which includes accounting, engineering, consulting or other services provided by local firms to foreign companies.

Transportation equipment is next, then travel/tourism, which represents the expenses of foreign tourists in the area for things such as plane tickets and hotel stays. Machinery rounds out the top five Birmingham exports.

For the Birmingham Business Alliance, the region's chief economic development agency, exports will be a focus in 2012.

While many local firms already are heavily involved in foreign trade, the export focus will seek to broaden and strengthen those ties, BBA Chief Executive Brian Hilson said.

Plans call for a three-pronged approach: addressing trade policy that would enhance Birmingham companies' exporting activities, conducting seminars for firms interested in starting or expanding exporting and promoting local exports with other trade organizations.

The education aspect of the focus, with seminars and experts brought in to work with local companies, is where BBA will likely be most active, he said.

"We're working closely with those who have the ability to be involved in foreign trade to make sure they have the opportunity to do so," Hilson said.

The potential to quickly ramp up the sector locally is great, he added, noting as an example Alabama's young auto industry, which currently drives state exports.

Last year, the value of Alabama-built vehicles shipped around the world reached nearly $5.4 billion, helping the state reach a record level of $17.9 billion in exports.

"Alabama has only produced vehicles for the last 20 years, and now they're the leading export," he said.

The Brookings data ranks Alabama 24th in the nation for its export value in 2010, the latest year available. That total is $23 billion and differs from the data provided by the state because it also include estimates of services shipped abroad.

Los Angeles topped the list of metros for export value in 2010, with nearly $80 billion. It was followed by New York, Chicago, Houston and Dallas.

For Birmingham, export-supported jobs totaled 24,700, earning the metro a No. 67 ranking among the top 100 metros.

Larry Harper, director of graduate programs at Samford University's Brock School of Business, said Birmingham doesn't have a traditionally strong export base like Huntsville's technology sector or Mobile's port.

But slowly, the area is coming along. Harper, who teaches international business, said more Birmingham firms are learning how to compete on a global stage.

"They're competing against imports, protecting local markets from global firms taking them away. The next thing is they have the opportunity to start developing and understanding; they need to do the same the other way by going into foreign markets," he said. "Even local business is international."